Starafricacorporation : Unaudited FY Results

Unaudited Abridged

Financial Results March 2023

I take pleasure in presenting the financial results for the year ended 31 March 2023. The Group managed to weather the harsh trading and operating environment as evidenced by preservation of the balance sheet.

R. J. MBIRE (PhD)

CHAIRMAN

CHAIRMAN'S STATEMENT

OVERVIEW

The year under review was characterised by rising inflationary pressures and exchange rate volatility, combined with heightened economic uncertainty emanating from the Russia-Ukraine conflict. This continued to undermine economic recovery from the challenges associated with the COVID-19 pandemic in the prior years.

While month-on-month inflation increased to double-digit figures from June 2022, tight fiscal and monetary policies announced in June 2022 brought some semblance of stability into the market as exchange rate volatility, which is a key source of inflationary pressure in Zimbabwe, has decreased, compared with the pre-July 2022 period.

On 22 June 2022, Government relaxed several Covid-19-related restrictions which had been in place. This was indicative of a softening stance taken by the authorities considering declining rates of COVID-19 infections and fatalities. Consequently, the year under review was not significantly affected by the pandemic, apart from remnant effects from prior periods.

GROUP RESULTS

The Group's financial results are inflation adjusted in compliance with the requirements of International Accounting Standard 29 - Financial Reporting in Hyperinflationary Economies and the historical cost financial information has been disclosed as supplementary data. A 30% increase in turnover was recorded in the year under review, from ZWL38.5billion in the prior year to ZWL50.1billion. The improvement was largely attributable to strong demand for all the Group's products during the year under review. However, the Group's operating profit shrunk by 93%, from ZWL5.0billion in the prior year to ZWL0.4billion. The lower operating profit was a direct result of increases in raw sugar prices and operating costs in real terms. Increasing global inflationary pressures have resulted in a spike in the costs of imported chemicals, packaging and refinery spares.

In historical terms, revenue increased by 317%, from ZWL10.2billion recorded in the prior year to ZWL42.5billion, while operating profit increased by 26%, from ZWL1.7billion to ZWL2.2billion.

OPERATIONS

Goldstar Sugars ("GSS")

During the year ended 31 March 2023, sales volumes of granulated sugar produced by GSS were stagnant, having been 82,500 tonnes sold in the prior year to 82,321 tonnes. This was on the back of pressure from imports after promulgation of Statutory Instrument 98 of 2022. The Ministry of Finance and Economic Development later suspended duty on the importation of sugar into the country. However, production was adversly affected by raw sugar stockouts and power outages. This resulted in production volumes reducing by 6%, from 82,399 tonnes in the prior year to 77,270 tonnes during the year under review. The unit continues to focus on refurbishment and replacement of critical items of plant and machinery to improve plant availability and, therefore, the refinery's throughput in terms of both quantity and quality of granulated white sugar.

The plant continued to be certified by The Coca Cola Company ("TCCC") and maintained its Food Safety Certification under the FSSC 22000 series. These certifications enable the Group to supply sugar to TCCC franchisees in the Southern African region and beyond.

Country Choice Foods ("CCF")

CCF's products continued to dominate the market on the back of competitive pricing. This has positioned the unit's products among the most affordable in the market. Consequently, sales volumes increased by 9%, from prior year's 1,879 tonnes to 2,048 tonnes. The growth in sales volumes was supported by an improvement in the production of sugar specialties, from 1,920 tonnes last year to 2,140 tonnes in the year under

G R O W I N G

OUR STAR

FOODPRINT

OPERATIONAL PERFORMANCE					SAC
					03790
		Year Ended	Year Ended
	PERCENTAGE CHANGE		PAGE 1 OF 4
	31 March 2023	31 March 2022
Sales Volumes - Goldstar Sugars (tonnes)	0.2%	82,321	82,500
Sales Volumes - Country Choice Foods (tonnes)	9%	2,048	1,879
FINANCIAL PERFORMANCE
	INFLATION ADJUSTED		HISTORICAL
Revenue	30%		317%
Net Assets	14%		236%

ABRIDGED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

for the year ended 31 March 2023

		INFLATION ADJUSTED	HISTORICAL
		Unaudited	Unaudited
		2023	2022	2023	2022
	Notes	ZWL	ZWL	ZWL	ZWL
Revenue from contracts with customers		49 799 631 333	38 367 396 293	42 170 080 794	10 136 745 197
Rental income		337 536 723	162 249 670	297 056 510	44 203 429
Total turnover		50 137 168 056	38 529 645 963	42 467 137 304	10 180 948 626
Cost of sales		(42 142 629 198)	(29 923 904 688)	(35 919 437 593)	(7 937 172 411)
Gross profit		7 994 538 858	8 605 741 275	6 547 699 711	2 243 776 215
Other income		581 326 675	124 796 508	549 891 802	32 655 249
Fair value gain/(loss)on
investment property	5	2 497 756 918	1 131 665 088	4 740 460 000	737 220 000
Selling and distribution expenses		(1 710 856 758)	(528 424 139)	(1 597 050 395)	(145 244 401)
Administrative expenses		(7 046 722 499)	(4 446 818 475)	(5 982 226 057)	(1 196 894 174)
Expected credit loss		(107 090 825)	(31 807 918)	(149 328 105)	(15 519 739)
Impairment loss		-	(2 877 599)	-	( 21 532)
Revaluation loss of property, plant
and equipment		-	-	-	-
Exchange (loss)/gain		(1 889 057 335)	134 412 202	(1 867 007 475)	45 376 864
Operating Profit		416 895 034	4 986 686 942	2 242 439 481	1 701 348 482
Finance cost		(49 752 321)	(4 231 058)	(49 599 967)	( 881 632)
Finance income		127 374	1 085 683	106 047	278 238
Loss on net monetary position	1.2	(2 425 427 260)	(2 010 878 286)	-	-
Share of profit of an associate		319 373 279	158 946 565	319 373 279	54 305 050
(Loss)/profit before income tax		(1 738 783 894)	3 131 609 845	2 512 318 840	1 755 050 138
Income tax expense	2	( 305 692 091)	(797 957 472)	(19 828 166)	(304 170 173)

review. The procurement and commissioning of an automatic syrup filling and icing packing machines has been crucial in terms of boosting production at the unit. During the twelve months under review, the unit launched new products into the market, namely drinking chocolate, powdered mahewu, baking powder, cocoa powder and baking raisins.

Properties Business

In inflation adjusted terms, revenue performance for this business improved significantly with ZWL337.5million of rental income being recorded, compared with ZWL162.2million in the prior year. The unit has recovered significantly from prior year, which was negatively impacted by the Covid-19 pandemic that reduced tenants' ability to generate income and meet their rental obligations. Following the waning of the pandemic, occupancy rates and, consequently, rental collections have increased across the property portfolio.

Tongaat Hulett Botswana

The associate recorded a profit for the period under review of ZWL958.1million, with the Company's share being ZWL319.4million after converting the earnings into Zimbabwean Dollars at the Reserve Bank of Zimbabwe Auction exchange rate as at 31 March 2023.

DIVIDEND

Considering the Company's focus on ensuring that adequate working capital is maintained, while facing a volatile operating environment, the Board has taken a decision not to declare a dividend for the year ended 31 March 2023.

OUTLOOK

Zimbabwe's operating environment is expected to remain challenging, largely because of the prevailing inflationary pressures. The Zimbabwe Dollar has regained value after a steep depreciation in June 2023. The tight monetary and fiscal policies enacted in May 2023, if maintained, are expected to bring more stability to the market. The global economic outlook continues to be weighed down by interest rate hikes by most central banks and the negative spill-over effects from the Russia- Ukraine conflict.

The Company looks forward to Government reinstating duty on imported sugar, a development which will impact positively on the local sugar industry.

The Company will continue to tighten its cost-mitigation measures in an effort to improve the operating profitability of both the refinery and the sugar specialties unit.

CONCLUSION

I wish to thank the Company's various stakeholders, my fellow Board Members, management and staff for their contribution to the Company's performance under a very difficult operating environment.

R. J. Mbire (PhD)

Chairman

5 September 2023

(Loss)/profit for the year

Other comprehensive income Other comprehensive income to be reclassified to profit or loss in

in subsequent periods:

Exchange differences on translating foreign operations

Net other comprehensive income to be reclassified to profit or loss in subsequent periods:

Other comprehensive income not to be reclassified to profit or loss in

in subsequent periods: Revaluation of property, plant and equipment

Income tax relating to components of other comprehensive income

Net other comprehensive income not to be reclassified to profit or loss in subsequent periods:

Other comprehensive income for the year, net of tax

Total comprehensive income

(Loss)/profit attributable to:

Non-controlling interests

Equity holders of the parent

Total comprehensive income attributable to: Non-controlling interests

Equity holders of the parent

Earnings per share
Basic (cents)	3.1
Diluted (cents)	3.2
Diluted (cents)	3.3

(2 044 475 985)

2 333 652 373

2 487 436 980

1 450 879 965

1 118 630 330	223 367 608	1 118 630 330	76 314 887
1 118 630 330	223 367 608	1 118 630 330	76 314 887

3 243 961 137	886 737 679	5 865 451 027	708 891 678
(801 907 193)	(219 201 554)	(1 454 090 879)	(174 744 788)
2 442 053 944	667 536 125	4 411 360 148	534 146 890
3 560 684 274	890 903 733	5 529 990 478	610 461 777
3 560 684 274	890 903 733	5 529 990 478	2 061 341 742
171 862 678	201 830 367	332 654 850	81 812 170
(2 216 338 663)	2 131 822 006	2 154 782 130	1 369 067 795
(2 044 475 985)	2 333 652 373	2 487 436 980	1 450 879 965
171 862 678	201 830 367	332 654 850	81 812 170
1 344 345 611	3 022 725 740	7 684 772 608	1 979 529 572
1 516 208 289	3 224 556 107	8 017 427 458	2 061 341 742
(46.09)	44.33	44.81	28.47
(46.09)	44.33	44.81	28.47
(59.62)	24.51	(5.72)	16.22

Directors: Dr. R.J. Mbire (Chairman), *R. Nyabadza (Chief Executive), M.E. Chiremba, C. Matorera, *A.J. Musemburi, G.T. Nyamayi, Dr. M. Sibanda, *F. Myambuki. - (*Executive),

G R O W I N G

OUR STAR

FOODPRINT

Unaudited Abridged

Financial Results March 2023

ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2023

		INFLATION ADJUSTED	HISTORICAL
		Unaudited	Unaudited
		2023	2022	2023		2022
	Notes	ZWL	ZWL	ZWL	ZWL
ASSETS
Non-current assets
Property, plant and equipment	4	10 452 358 592	6 106 562 805	8 665 683 328		1 629 165 737
Investment property	5	5 757 000 000	3 569 321 043	5 757 000 000		1 219 480 000
Investment in an associate		1 328 418 196	568 947 987	1 328 418 196		194 384 502
		17 537 776 788	10 244 831 835	15 751 101 524		3 043 030 239
Current assets
Inventories		1 682 313 418	1 816 532 517	1 680 951 157		616 542 405
Trade and other receivables		2 620 179 658	1 253 318 618	2 620 179 658		428 203 844
Prepayments		1 703 792 043	1 611 535 826	1 672 517 234		519 791 075
Cash and cash equivalents		828 061 141	1 214 655 551	828 061 141		414 994 374
		6 834 346 260	5 896 042 512	6 801 709 190		1 979 531 698
Total assets
	24 372 123 048	16 140 874 347	22 552 810 714		5 022 561 937
EQUITY AND LIABILITIES
Equity attributable to equity holders
of the parent
Issued capital		64 265 555	64 265 555	480 866		480 866
Share premium		7 719 560 749	7 719 560 749	57 761 526		57 761 526
Non-distributable reserves		5 241 386 538	1 680 702 264	6 892 683 438		1 362 593 169
Retained earnings / (accumulated losses)		(1 735 984 680)	480 353 983	3 959 151 433		1 804 369 301
		11 289 228 162	9 944 882 551	10 909 977 471		3 225 204 862
Non-controlling interest		1 196 254 258	1 024 391 582	497 702 699		165 047 849
Total equity		12 485 482 420	10 969 274 133	11 407 680 170		3 390 252 711
Non-current liabilities
Deferred tax liability		2 371 049 922	1 485 549 485	1 629 539 838		372 947 828
		2 371 049 922	1 485 549 485	1 624 689 838		372 947 828
Current liabilities
Payables and provisions		8 461 808 667	3 116 576 180	8 461 808 667		1 064 796 994
Short-term borrowings	6	759 002	2 221 540	759 002		759 002
Bank overdraft		912 369 472	-	912 369 472		-
Income tax payable		237 653 565	567 253 009	237 653 565		193 805 402
		9 612 590 706	3 686 050 729	9 612 590 706		1 259 361 398
Total liabilities		11 983 640 628	5 171 600 214	11 242 130 544		1 632 309 226
Total equity and liabilities		24 372 123 048	16 140 874 347	22 552 810 714		5 022 561 937

ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 March 2023

		INFLATION ADJUSTED	HISTORICAL				SAC
								03790
		Unaudited	Unaudited
					PAGE 2 OF
		2023	2022	2023		2022
		ZWL	ZWL	ZWL	ZWL	4
Cash flows from operating activities
Cash used in operations	3 869 821 712	2 895 336 288	2 136 864 251		512 983 331
Finance cost paid	(49 752 321)	(3 932 802)	(49 599 967)		( 810 481)
Income tax paid	(204 220 597)	(471 071 466)	(174 493 843)		(130 390 378)
Net cash flows generated from/(used in)
operating activities		3 615 848 794	2 420 332 020	1 912 770 441		381 782 472
Cash flows from investing activities
Acquisition of property, plant and equipment	(1 407 473 606)	(1 196 604 549)	(1 281 293 607)		(352 577 256)
Proceeds on disposal of property, plant
and equipment	29 006 746	785 958	25 640 777		236 944
Proceeds on disposal of investment property	449 533 035	-	440 604 255		-
Finance income received	127 374	1 085 683	106 047		278 238
Dividends received from associate	322 493 328	442 294 783	303 969 915		104 129 293
Net cash flows (used in)/generated from
investing activities		(606 313 123)	(752 438 125)	(510 972 613)		(247 932 781)
Cash flows from financing activities
Loans paid	-	(3 256 410)	-		( 654 451)
Net cash flows used in financing activities		-	(3 256 410)	-		( 654 451)
Net increase in cash and cash equivalents	3 009 535 671	1 664 637 485	1 401 797 829		133 195 240
Cash and cash equivalents at 1 April	1 214 655 550	1 170 759 382	414 994 374		231 620 225
Net foreign exchange difference	(4 308 499 552)	(1 620 741 316)	(1 901 100 534)		50 178 909
Cash and cash equivalents at 31 March		( 84 308 331)	1 214 655 551	( 84 308 331)		414 994 374

The historical amounts are shown as supplementary information. This does not comply with the International Financial Reporting Standards in that it has not taken account of the requirements of International Accounting Standard 29 Financial Reporting in Hyperinflationary Economies. As a result the auditors have not expressed an opinion on the historical financial information.

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2023

INFLATION ADJUSTED (UNAUDITED)

			ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
				Equity component of
	Issued	Share	Non -distributable	compound financial	Retained		Non-controlling	Total
	capital	premium	reserve	instruments	Earnings	Total	interests	equity
Notes	ZWL	ZWL	ZWL	ZWL	ZWL	ZWL	ZWL	ZWL
Balance as at 31 March 2021	64 265 555	7 719 560 749	789,798,531.00	13 921 010	(1 665 389 034)	6 922 156 811	822 561 213	7 744 718 024

Total comprehensive income

Profit for the year

Other comprehensive income

Derecognition of equity component of compound financial instrument

Balance as at 31 March 2022

Total comprehensive income

Profit/(loss) for the year

Other comprehensive income

Balance as at 31 March 2023

	-	-	890 903 733	-	2 131 822 007	3 022 725 740	201 830 367	3 224 556 107
	-	-	-	-	2 131 822 007	2 131 822 007	201 830 367	2 333 652 374
	-	-	890 903 733	-	-	890 903 733	-	890 903 733
	-	-	-	( 13 921 010)	13 921 010	-	-	-
	64 265 555	7 719 560 749	1 680 702 264	-	480 353 983	9 944 882 551	1 024 391 580	10 969 274 131
	-	-	3 560 684 274	-	(2 216 338 663)	1 344 345 611	171 862 679	1 516 208 289
	-	-	-	-	(2 216 338 663)	(2 216 338 663)	171 862 679	(2 044 475 985)
	-	-	3 560 684 274	-	-	3 560 684 274	-	3 560 684 274
	64 265 555	7 719 560 749	5 241 386 538	-	(1 735 984 680)	11 289 228 161	1 196 254 259	12 485 482 421

HISTORICAL (UNAUDITED)

			ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
				Equity component of
	Issued	Share	Non -distributable	compound financial	Retained		Non-controlling	Total
	capital	premium	reserve	instruments	Earnings	Total	interests	equity
Notes	ZWL	ZWL	ZWL	ZWL	ZWL	ZWL	ZWL	ZWL
Balance as at 31 March 2021	480 866	57 761 526	761 638 552	99 792	425 694 554	1 245 675 290	83 235 679	1 328 910 969
Total comprehensive income	-	-	610 461 777	-	1 369 067 794	1 979 529 571	81 812 170	2 061 341 741
Profit for the year	-	-	-	-	1 369 067 794	1 369 067 794	81 812 170	1 450 879 964
Other comprehensive income	-	-	610 461 777	-	-	610 461 777	-	610 461 777
Reclassification of foreign currency reserves	-	-	(9 507 160)	-	9 507 160	-	-	-
Derecognition of equity component of compound financial instrument	-	-	-	(99 792)	99 792	-	-	-
Balance as at 31 March 2022	480 866	57 761 526	1 362 593 169	-	1 804 369 300	3 225 204 861	165 047 849	3 390 252 710
Total comprehensive income	-	-	5 529 990 478	-	2 154 782 131	7 684 772 609	332 654 851	8 017 427 460
Profit for the year	-	-	-	-	2 154 782 131	2 154 782 131	332 654 851	2 487 436 982
Other comprehensive income	-	-	5 529 990 478	-	-	5 529 990 478	-	5 529 990 478
Balance as at 31 March 2023	480 866	57 761 526	6 892 583 647	-	3 959 151 431	10 909 977 470	497 702 700	11 407 680 170

Directors: Dr. R.J. Mbire (Chairman), *R. Nyabadza (Chief Executive), M.E. Chiremba, C. Matorera, *A.J. Musemburi, G.T. Nyamayi, Dr. M. Sibanda, *F. Myambuki. - (*Executive),

Unaudited Abridged

Financial Results March 2023

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS

for the year ended 31 March 2023

1 BASIS OF PREPARATION

These abridged consolidated financial results were extracted from the full set of the inflation adjusted consolidated financial statements of Starafrica Corporation Limited (the "Company") and its subsidiaries (together the "Group") which were prepared in accordance with International Financial Reporting Standards ("IFRS"). The Group's functional and presentation currency for operations in Zimbabwe is the Zimbabwean Dollar (ZWL) rounded off to the nearest dollar. The Monetary Authorities introduced the ZWL as the transactional and functional currency on 22 February 2019.

1.1 Functional Currency

(a) Legacy currency issues

On 22 February 2019, the Government of Zimbabwe issued Statutory Instrument 33 of 2019 as an amendment to the Reserve Bank of Zimbabwe Act. It introduced a new currency called the Real Time Gross Settlement Dollar (now ZWL$) and directed that all assets and liabilities that were in United States Dollars (US$) immediately before 22 February 2019 (with the exception of those referred to in Section 44C (2) of the Reserve Bank Act) be deemed to have been in ZWL$ at a rate of 1:1 to the US$. The guidance issued by the Public Accountants and Auditors Board (PAAB) notes that this is contrary to IAS 21 "The effects of changes in Foreign Exchange Rates". IAS 21 requires an entity to apply certain parameters to determine the functional currency for use in preparing financial statements. It also requires the exercise of judgements regarding exchange rates in circumstances where exchangeability through a legal and market exchange system is not achievable. The Group however adopted the RTGS dollar as the new functional and reporting currency with effect from 22 February at an interbank midrate of US$1: ZWL$ $2.5 in order to comply with Statutory Instrument 33. The interbank midrate was adopted as it was the only legal source of exchange rates which however, did not represent the fair value of the currencies. The company therefore did not conform to the requirements of IAS 21.

The Group prepares financial statements with the aim to fully comply with International Financial Reporting Standards (IFRS) which comprise standards issued by the International Accounting Standards Board (IASB) and interpretations developed and issued by the International Financial Reporting Interpretations Committee (IFRIC). Compliance with IFRS is intended to achieve consistency and comparability of financial

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS (continued) for the year ended 31 March 2023

				INFLATION ADJUSTED		HISTORICAL
				Group		Group
				2023		2022	2023	2022
				ZWL	ZWL	ZWL	ZWL
2	INCOME TAX
	Current year	157 548 023		835 595 963	157 548 023	285 486 386
	Tax on foreign dividends	64 550 822		87 177 378	60 793 983	20 825 858
	Deferred tax	83 593 246		( 124 815 870)	( 193 460 146)	(2 142 071)
				305 692 091		797 957 471	24 881 860	304 170 173	SAC 03790
									PAGE 3
				INFLATION ADJUSTED		HISTORICAL
					OF 4
3	EARNINGS PER SHARE	2023		2022	2023	2022
				ZWL	ZWL	ZWL	ZWL
	Net profit attributable to equity holders
	of the parent	(2 216 338 663)		2 131 822 007	2 154 782 130	1 369 067 795
				2023		2022	2023	2022
				ZWL	ZWL	ZWL	ZWL

statements. However, it has been impracticable to fully comply with IFRS in the current and prior year, due to the need to comply with local legislation, specifically Statutory Instrument 33 of 2019. The Directors are of the view that the requirement to comply with the Statutory Instrument has created inconsistencies with International Accounting Standard (IAS) 21 (The effects of changes in foreign exchange rates) as well as with the principles embedded in the IFRS Conceptual Framework. This has resulted in the accounting treatment adopted in the 2019, 2020, 2021,2022 and 2023 financial statements being different from that which the Directors would have adopted if the Group had been able to fully comply with IFRS.

b) Determination of functional currency.

The Group is operating in an environment which has witnessed significant monetary and exchange control policy changes. On the 17th of June 2020, an RBZ Exchange Control Directive RV175/2020 was issued on the introduction of a Foreign Exchange Auction System. Foreign exchange auction trading system was operationalised with effect from 23 June 2020 and foreign currency trading was conducted through the Foreign Exchange Auction Trading System (Auction) through a bidding system. On the 24th of July 2020, Statutory Instrument 85 of 2020 was promulgated which amended the exclusive use of Zimbabwe dollar for domestic transactions rules by allowing dual pricing and displaying, quoting and offering of prices for domestic goods and services. The SI also permitted any person who provides goods or services in Zimbabwe to display, quote or offer the price for such goods or services in both Zimbabwe dollar and foreign currency at the ruling exchange rate.

Considering the developments summarised above and guidance from IAS 21, the Directors concluded that the Group's functional currency remains the Zimbabwe dollar as presented in the prior and current year financial statements and all values are rounded to the nearest ZWL except when otherwise indicated.

(c) Statement of Compliance

Because of the items detailed in the above currency paragraph, the inflation adjusted consolidated financial statements from which these abridged consolidated financial statements were extracted have not been prepared in conformity with the IFRS specifically IAS 21, promulgated by IASB. As such the Group has not complied with the Companies And Other Business Entities Act (Chapter 24:31) as it requires the financial statements to be prepared in the manner required by IFRS.

1.2 Hyperinflation

These financial statements have been prepared under the inflation adjusted accounting basis in line with the provisions of International Accounting Standard (IAS) 29 - Financial Reporting in Hyperinflationary Economies. The PAAB pronounced on 11 October 2019 that the Zimbabwean economy was trading under hyperinflationary conditions. The Directors have applied the guidelines provided by the PAAB and accounting bodies and applied the hyperinflation accounting principles.

Inflation adjusted financial statements have been drawn up using the conversion factors derived from the consumer price index ("CPI") prepared by the Zimbabwe Central Statistical Office

1. Basic earnings per share
   (Loss)/profit attributable to equity holders of the parent
   Weighted average number of ordinary shares in issue Earnings per share (cents)
2. Diluted earnings per share
   (Loss)/profit attributable to equity holders of the parent
   Weighted average number of ordinary shares adjusted for the effect of dilution
   Earnings per share (cents)
3. Headline earnings per share
   Headline (loss)/earnings Weighted average number of ordinary shares in issue Headline earnings per share (cents)
4. Reconciliation of earnings used in calculating headline earnings per share (Loss)/profit attributable to equity holders of the Company
   Adjusted for:
   Fair value gain on investment properties
   Profit on sale of property, plant and equipment
   Exchange (gain) / loss
   Adjusted earnings
   Total tax effect on adjustments
   Headline (loss)/earnings

(2 216 338 663)	2 131 822 007	2 154 782 130	1 369 067 795
4 808 662 335	4 808 662 335	4 808 662 335	4 808 662 335
(46.09)	44.33	44.81	28.47
(2 216 338 663)	2 131 822 007	2 154 782 130	1 369 067 795
4 808 662 335	4 808 662 335	4 808 662 335	4 808 662 335
(46.09)	44.33	44.81	28.47
(2 866 951 420)	1 178 442 998	( 274 936 682)	779 752 894
4 808 662 335	4 808 662 335	4 808 662 335	4 808 662 335
(59.62)	24.51	(5.72)	16.22
(2 216 338 663)	2 131 822 007	2 154 782 130	1 369 067 795
(2 594 756 918)	(1 131 665 088)	(4 740 460 000)	( 737 220 000)
(158 557 533)	( 366 664)	(354 122 942)	( 233 770)
1 889 057 335	( 134 412 202)	1 867 007 475	( 45 376 864)
(3 080 595 778)	865 378 053	(1 072 793 337)	586 237 161
213 644 359	( 75 941 828)	797 856 655	40 756 317
(2 866 951 420)	789 436 225	( 274 936 682)	626 993 478

The conversion factors used to restate the financial statements are as follows:	.
MARCH 2023	MARCH 2022

• PROPERTY, PLANT AND EQUIPMENT

The Group carries land and buildings at fair value less accumulated depreciation and impairment, and the rest of property plant and equipment is carried at cost less accumulated depreciation and impairment. The revalued property consists of commercial stands, warehouses, residential

Month	All Items CPI	Conversion
	Indices	Factors
March 2023	13,949.99	1.0000
February 2023	13,849.20	1.0073
January 2023	13,819.67	1.0094
December 2022	13,672.91	1.0203
November 2022	13,349.42	1.0450
October 2022	13,113.95	1.0638
September 2022	12,713.12	1.0973
August 2022	12,286.26	1.1354
July 2022	10,932.83	1.2760
June 2022	8,707.35	1.6021
May 2022	6,662.17	2.0939
April 2022	5,507.11	2.5331
March 2022	4,766.10	2.9269

Month	All Items CPI	Conversion
	Indices	Factors
March 2022	4,766.10	2.9269
February 2022	4,483.06	3.1117
January 2022	4,189.97	3.3294
December 2021	3,977.46	3.5073
November 2021	3,760.86	3.7093
October 2021	3,555.90	3.9231
September 2021	3,342.02	4.1741
August 2021	3,191.19	4.3714
July 2021	3,062.93	4.5545
June 2021	2,986.44	4.6711
May 2021	2,874.85	4.8524
April 2021	2,803.57	4.9758
March 2021	2,759.83	5.0547

and industrial buildings in Zimbabwe. Fair value of the properties was determined by using market comparable method and the implicit investment method.

At date of revaluation, 31 March 2023, the properties' fair values were determined by Dawn Properties Consultants (Private) Limited, an accredited independent valuer. The valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific property.

INFLATION ADJUSTED				UNAUDITED
		Land and	Plant and	Commercial	Passenger motor	Furniture &	Total
		Buildings	Machinery	vehicles	vehicles	equipment
		ZWL$	ZWL$	ZWL$	ZWL$	ZWL$	ZWL$
Cost / Valuation
Balance at 1 April 2022	3 938 786 221	3 626 030 362	451 239	69 014 006	208 374 145	7 842 655 973
Additions	131 028 366	1 165 293 883	-	44 397 952	66 753 401	1 407 473 602
Disposals	-	-	-	(10 759 678)	-	(10 759 678)
Reclassification	-	(87 808)	-	-	(10 350 528)	(10 438 335)
Revaluation surplus	3 165 185 413	-	-	-	-	3 165 185 413

The carrying amounts of non-monetary assets and liabilities carried at historical cost have been restated to reflect the change in the general price index as if they had been hyperinflationary from 1 April 2021. No adjustment has been made for those non-monetary assets and liabilities measured at fair value. Impairment is recognised in the profit or loss if the measured amount of a non-monetary asset exceeds the recoverable amount.

All items recognised in the statement of profit or loss and other comprehensive income are restated by applying the average monthly general price index when the items of income and expenses were initially earned or incurred

Gains or losses on the net monetary position have been recognised as part of profit before income tax in the statement of profit or loss and other comprehensive income. All amounts in the statement of cash flows were segregated into the respective months in which the cash flows actually occurred and the applicable monthly factor used to hyper-inflate the amount. Gain or losses on cash flows were included in non-cash items.

The historical cost information has been shown as supplementary information for the benefit of user. These are not required in terms of IAS 29 - Financial Reporting in Hyperinflationary Economies. The auditors have not expressed an opinion on the historical cost information.

Balance at 31 March 2023	7 235 000 000	4 791 236 437	451 239	102 652 280	264 777 018	12 394 116 975
Accumulated depreciation
Balance at 1 April 2022	- 1 643 310 476	451 239	11 338 766	80 992 687	1 736 093 168
Depreciation charge
for the year	78 775 724	155 052 976	-	18 180 733	33 286 897	285 296 330
Depreciation reversal
on revaluation	(78 775 724)	-	-	-	-	(78 775 724)
Disposals	-	-	-	(855 391)	-	( 855 391)
Balance at 31 March 2023
- 1 798 363 452	451 239	28 664 108	114 279 584	1 941 758 383
Net book value
31 March 2023	7 235 000 000	2 992 872 985	-	73 988 172	150 497 434	10 452 358 592
Net book value
31 March 2022
3 938 786 221	1 982 719 886	-	57 675 240	127 381 458	6 106 562 805

Directors: Dr. R.J. Mbire (Chairman), *R. Nyabadza (Chief Executive), M.E. Chiremba, C. Matorera, *A.J. Musemburi, G.T. Nyamayi, Dr. M. Sibanda, *F. Myambuki. - (*Executive),

Unaudited Abridged

Financial Results March 2023

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS (continued)

for the year ended 31 March 2023

• PROPERTY, PLANT AND EQUIPMENT (continued)

		HISTORICAL					UNAUDITED
					Land and	Plant and	Commercial	Passenger motor	Furniture &	Total
					Buildings	Machinery	vehicles		vehicles	equipment
					ZWL$	ZWL$	ZWL$		ZWL$	ZWL$	ZWL$
	Cost / Valuation
	Balance at 1 April 2022	1 345 710 000		262 532 781	3 376	15 021 588	26 906 241	1 650 173 986
	Additions	89 739 188		1 098 854 137	-	38 306 135	54 394 142	1 281 293 602
	Disposals	-		-	-	(6 509 963)	-	(6 509 963)
	Reclassification	-		(30 000)	-		-	(3 536 320)	(3 566 320)
	Revaluation surplus	5 799 550 812		-	-		-	-	5 799 550 812
	Balance at 31 March 2023	7 235 000 000		1 361 356 918	3 376	46 817 760	77 764 063	8 720 942 117
	Accumulated depreciation
	Balance at 1 April 2022	-		15 566 633	3 376		1 828 734	3 609 506	21 008 249
	Depreciation charge
	for the year	65 900 215		16 256 884	-		6 585 350	11 736 179	100 478 628
	Depreciation reversal
	on revaluation	(65 900 215)		-	-		-	-	(65 900 215)
	Disposals	-		-	-		(327 873)	-	( 327 873)
	Balance at 31 March 2023	-		31 823 517	3 376		8 086 211	15 345 685	55 258 789
	Net book value
			31 March 2023	7 235 000 000		1 329 533 401	-	38 731 549	62 418 378	8 665 683 328
	Net book value
	31 March 2022	1 345 710 000		246 966 148	-	13 192 854	23 296 735	1 629 165 737
							INFLATION ADJUSTED			HISTORICAL
							2023		2022			2023		2022
							ZWL		ZWL			ZWL	ZWL
5			INVESTMENT PROPERTY
	Balance at 1 April				3 569 321 043	2 437 655 957		1 219 480 000		482 260 000
	Valuation gain on investment property	2 594 756 918	1 131 665 086		4 740 460 000		737 220 000
	Disposal of investment property	(310 077 961)		-		(105 940 000)		-
	Balance at 31 March				5 854 000 000	3 569 321 043		5 854 000 000		1 219 480 000
							INFLATION ADJUSTED			HISTORICAL
							2023		2022			2023		2022
							ZWL		ZWL			ZWL	ZWL
	Income and expenses relating
	to investment property
	Rental income				337 536 723	162 249 670		(297 056 510)		44 203 429
	Direct operating costs incurred
	in generating the rental income	(41 855 172)	(13 071 478)		(35 757 751)		(3 535 147)

Fair value hierarchy

The following table shows an analysis of the fair values of investment property recognised in the statement of financial position by level of the fair value hierarchy;

		INFLATION ADJUSTED		HISTORICAL
		2023	2022	2023	2022
		ZWL	ZWL	ZWL	ZWL
Fair value measurement using significant
unobservable inputs (Level 3)
Commercial	5 657 000 000	3 463 454 328	5 657 000 000	1 183 310 000
Residential	197 000 000	105 866 715	197 000 000	36 170 000
Total	5 854 000 000	3 569 321 043	5 854 000 000	1 219 480 000

Valuation approach for investment property

Investment properties were valued by Dawn Property Consultancy (Private) Limited an accredited independent valuer. Dawn Property Consultancy (Private) Limited is a specialist in valuing these types of investment properties. A valuation model in accordance with that recommended by the International Valuations Standards Committee has been applied.

			INFLATION ADJUSTED		HISTORICAL
			Group			Group
			2023		2022	2023	2022
			ZWL	ZWL	ZWL		ZWL
6 SHORT-TERM BORROWINGS
Changes in interest-bearing loans and
borrowings arising from financing activities
Balance at 1 April	2 221 540		6 784 868	759 002		1 342 302
Interest charged	-		298 258	-		71 151
Loans paid	-		( 3 256 410)	-		( 654 451)
Monetary gain		(1 462 538)		( 1 605 176)	-		-
Balance at 31 March		759 002		2 221 540	759 002		759 002

NOTES TO THE ABRIDGED FINANCIAL STATEMENTS (continued) for the year ended 31 March 2023

7 GOING CONCERN

The Group's revenue has increased from ZWL 38.53 billion recorded last year to ZWL 50.14 billion in the current year largely due to increase in
average sellingg prices to counter upward reviews on prices of the main raw materials. The volumed sold maintaine fairly the same as the Group
sold tonnes sold 82,321 tonnes of granulated sugar as compared to the prior year achievement of 82,500 tonnes. The Group has grown the net
asset position to ZWL 12.39 billion, up from ZWL 10.97 billion in 2022. . The company continues to make significant progress in its plans to retool
and refurbish the business and is on track to achieve the budgeted production and sales throughput of 65,000 tonnes for the 2024 financial year.
Demand for granular sugar and specialties in the market remains strong, which will ensure that all the produce of the company in the
foreseeable future will be absorbed into the local market. The plant continued to be certified by The Coca Cola Company ("TCCC") as well
as Food Safety certification under the FSSC 22000 series. The certifications enable the Group to supply products to TCCC franchisees in
the Southern Africa region and beyond. The Group also continues to hold DQS and ISO:9001 Certifications which will enable it to continue
operating as a going concern into the future. The company continues to invest in plant refurbishment with a view to boost capacity utilisation.
In the financial year 2022, the business incurred a total of USD1,347,286 (ZWL1.41 billion) on capital equipment. This equipment includes	SAC
effluent treatment plant, product and coal weighers, a dust extraction system (white house and packing station), boiler and boiler chimney
03790
refurbishments, a 1000 KV stand-by generator, and extension of despatch bay shade structure. The company continues to access foreign
currency from the Reserve Bank of Zimbabwe Foreign Currency Auction Trading System which has played a pivotal role in providing foreign	PAGE 4
currency to fund the refurbishment drive of the business. These are expected to result in improved productivity and sales volumes into the
OF 4
foreseeable future. All key contracts with suppliers and customers remain in place and no cancellations are expected in the foreseeable future.
The 2022/2023 farming season achieved high yields of sugar cane in Zimbabwe which are expected to augment the raw sugar supply
situation in the country. The Company will source its primary raw material, raw sugar, from Zimbabwe Sugar Sales, backed up by embarking
imports which will ensure an uninterrupted cost effective operations at the refinery. The business will continue to assess and anticipate the full
scale impact of the Statutory Instrument (SI) 80 of 2023 - Customs and Excise (Suspension) (Amendment) Regulations, 2023 (No. 267).
Management anticipates that the business will be able to generate positive cash flows into the future regardless of the implications of the SI
80 of 2023 which suspended import duty on importation of sugar. The ability of the company to continue generating cash flows into the future
has not been affected by these issues. As per the 2024 capital and financial expenditure budget, demand for Starafrica products remains high
both domestically and in the region which is expected to result in a total of ZWL5.3 billion in cash generated from operating activities for the
full year of 2024. Management performed a scenario analysis and noted that, in the worst case scenario, brought about by the anticipated
effects of SI 80 of 2023, the downside impact would still have the business earning positive cash flows to the tune of ZWL2.2 billion from
operating activities. The business remains in a sound financial position with sufficient liquidity to settle its obligations as they fall due.
An impact assessment of the current and historical effects of SI 80 of 2023 minimal impact in the foreseeable future. Although this could
threaten the business's market position and market share, it is conceivable that customers will find it difficult to import sugar from very
competitive sources like Brazil and India in huge quantities, as this would require huge working capital outlays, and would also expose the
imported sugar to high risk of contamination enroute to Zimbabwe. This SI will not create more competition from the COMESA region as sugar
imports amongst COMESA countries do not attract duty payments. Therefore, it is presumed that the projected 65,000 tonnes of production
and sales will be achieved in the year 2024.
The Directors have assessed the ability of the Group to continue operating as a going concern and believe that the preparation of these
financial statements on a going concern basis is still appropriate. The Directors have engaged themselves to continuously assess the ability
of the Group to continue operating as a going concern and to determine the continued appropriateness of the going concern assumption that
has been applied in the preparation of these financial statements.
Impact of the Russia-Ukraine Conflict
Global economic shocks arising from the Russia-Ukraine conflict triggered increases in grain and oil prices towards the end of 2022 financial year
and beyond. This has had the direct effect of increasing costs of production across industry as oil price escalations have affected all businesses
which rely on the transportation of raw materials or finished goods. The direct effect on Starafrica, however, has not been significant, save for the
downstreameffectofpriceescalationsoncostsofrawmaterials,whichsuppliershaveincreasedinvaryingdegreesinresponsetotheseglobalshocks.
None of the Directors have any links to Russia, which have caused, or are likely to cause, sanctions being imposed on those Directors or on the
Company. The Russia-Ukraine conflict is not expected to have direct impact on the operations of Starafrica Corporation Limited.

8 EVENTS AFTER REPORTING DATE

Suspension of duty on importation of basic commodities.

On 12 May 2023, the Government promulgated Statutory Instrument (SI) 80 of 2023 titled Customs and Excise (Suspension)

(Amendment) Regulations, 2023 (No. 267), which suspends import duty on basic commodities, including brown and refined sugar.

Management assessed the impact of the SI 80 of 2023 and ascertained that although this could threaten the business's market position and market share, it is conceivable that customers will find it difficult to import sugar from very competitive sources like Brazil and India in huge quantities, as this would require huge working capital outlays, and would also expose the imported sugar to high risk of contamination enroute to Zimbabwe. This SI will not create more competition from the COMESA region as sugar imports amongst COMESA countries do not attract duty payments. Therefore, it is presumed that the projected 65,000 tonnes of production and sales will be achieved in the year 2024.

Directors: Dr. R.J. Mbire (Chairman), *R. Nyabadza (Chief Executive), M.E. Chiremba, C. Matorera, *A.J. Musemburi, G.T. Nyamayi, Dr. M. Sibanda, *F. Myambuki. - (*Executive),